As the conflict in Gaza continues to unfold, the longstanding debate over the feasibility of a two-state solution between Israel and Palestine has resurfaced with renewed urgency. Recent statements by American, Palestinian, and Arab leaders have called for a re-examination of this approach, hoping it might provide a framework for lasting peace in a region fraught with tension.
November marks the anniversary of the 1988 “Declaration of Independence” by the Palestine Liberation Organization (PLO), a pivotal moment when all Palestinian factions agreed to accept the partition of Palestine and recognized Israel’s existence within its pre-1967 borders. This historic decision was grounded in the aspiration for a sovereign Palestinian state comprising the West Bank, including East Jerusalem, and the Gaza Strip—a mere 22 percent of the original territory.
Economic viability was a significant concern from the outset. In 1990, Palestinian economists, under the guidance of the PLO, conducted a comprehensive study to assess whether such a state could sustain itself. Their conclusion was cautiously optimistic: a Palestinian state could thrive economically, provided Israel withdrew its military presence, dismantled settlements, and allowed Palestinians full control over their natural resources and borders.
However, the 1993 Oslo Accords, while a milestone in the peace process, fell short of these prerequisites. The Accords granted limited autonomy to the Palestinian Authority but did not halt the expansion of Israeli settlements. This partial sovereignty hindered economic development, as investors lacked confidence in the stability and independence of the Palestinian territories.
The failure to reach a permanent status agreement during the Camp David Summit in 2000 further dimmed hopes. The subsequent outbreak of the second intifada and the intensified military responses exacerbated economic and political instability. The internal division between the West Bank and Gaza since 2006 has only deepened these challenges, leading to greater economic disparities and dependencies.
Today, the vision of two states coexisting peacefully seems both essential and elusive. Re-evaluating the economic foundations of this solution is critical. For a Palestinian state to be viable, it must have sovereignty over its land and resources, free from external control. Without addressing these core issues, the prospect of lasting peace remains uncertain.
The international community’s renewed calls for a two-state solution present an opportunity to revisit and address the unresolved economic and political hurdles. Only through mutual recognition of each other’s rights and a commitment to equitable solutions can Israelis and Palestinians hope to achieve enduring peace and prosperity.
Reference(s):
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